Which of the Following Is Not True When the Fair

question 22

Multiple Choice

Which of the following is not true when the fair value option is elected for an investment that would normally be accounted for under the equity method?

• A) No journal entry need be made to recognize the investor's portion of the investee's net income.
• B) Unrealized holding gains and losses on that investment are recognized in net income.
• C) No journal entry need be made to recognize the investor's portion of dividends paid by the investee.
• D) All of these answer choices are true.

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Definitions:

Sociometry

A quantitative method for measuring social relationships, often used to identify social networks and patterns within groups.

Group Structure

The arrangement or organization of relations between members within a group.

Group Behavior

The actions, norms, and psychological processes that occur within a social group or between social groups.

Experimental Study

A research method involving the manipulation of variables to test hypotheses and observe the effects on an outcome.